Global Market Opportunity $200B Worldwide Sales 250 Million cows - - PowerPoint PPT Presentation

Global Market Opportunity

250 Million cows need routine testing

$200B Worldwide Sales

• Udder infections (Mastitis) cost farmers more than $20B/year
• Bulk milk is discarded
• Incentive payments are lost
• Reduced milk production
• A metabolic disorder (Ketosis) cost farmers another $6B/year
• Lower milk production
• Conditions often go undetected for long time
• Permanent damage due to delayed treatment

Somatic Cell Count (SCC) Test (Mastitis Detection ) Ketone Test

Formulations are protected by patents and a variety of trade secrets and proprietary synthesized chromogenic agents.

Inexpensive, Easy to use, On-Farm testing devices. Used for rapid detection of disease and early intervention. Udder Infection Test - LDH

NEW

• 2011 & 2012 National Platinum

Dairy Quality Award Winner

• 2012 MMPA (MI Milk Producers Assoc.)

Best Quality Milk Award

• 250 cows

Somatic Cell Count (cells/mL)

Lower is better

Production Level (lbs/cow/year) 250,000 40,000 100,000 20,000 30,000 3x milking

ROI = $262,000.00

• Increased income: $260 bonus+$800 additional production/cow/yr

= $1,060/cow/yr

• $10.00/cow/yr SCC test costs
• ROI = $262,000.00
• Plus:
• Improvement in overall cow health
• Quicker breeding times
• Less time & $ treating sick animals

Key Features CMT PortaCheck Lab Analyzers Delaval On Farm ʘ ʘ ʘ Easy to use ʘ ʘ ʘ Affordable ʘ ʘ Reliable ʘ ʘ ʘ Quantative ʘ ʘ ʘ Time to result ʘ ʘ ʘ

Large Dairies >500 cows Average dairies 11-500 cows Micro “dairies”

<10 cows 10,000 dairies; 15 mill cows 750,000 dairies; 112 mill cows 65 mill dairies; 130 mill cows

• Distribution:

Manufacturers reps, wholesalers, retailers

• Strategic Alliances:

Dairy processors, Animal health companies

• Licensing Opportunities:

Private label

Inflection Point

• Founded as research business
• Ten years focused solely on research
• Strategy Shift in 2011: become leader in on-farm diagnostics

for dairy industry

• Three consecutive years of consistent sales growth validates

market demand

• Outside investment needed to fill gaps, invest in sales strategy

and accelerate growth

 Michael Gavin – President/CEO

• 25 years of diagnostic industry experience.
• Commercialized more than 20 diagnostic products

 David Lee - Dairy Advisor

• 35 years dairy industry experience
• Dept. Head, Rutgers Cooperative Extension & Research

 Art Healy – Financial Advisor

• CPA and Attorney with 13 years in public accounting
• 13 years CFO for early stage companies

 Key Hire – Director of Marketing and Sales

• With Extensive Dairy/Ag Experience
• Experience with Distribution Management
• International Experience a plus

 Marian Fabis, MVDr, PhD

• Consultant, Veterinary Diagnostics and Nutrition, Slovakia

 Nathaniel Makoni, PhD

• President, ABS TCM Ltd., Kenya

 Ignacio Pino, DVM

• President, CDI Laboratories, Puerto Rico

 Dr. Peter Zieger

• National Veterinary Specialist, Cattle
• Pfizer Animal Health Germany GmbH

• LDH – Launched Q4 2012
• New Somatic Cell Counter
• Whole Blood Calcium - 2013
• Whole Blood Mineral Panel - 2014
• Whole Blood BHB
• Laminitis Treatment

Fiscal Year 2011 2012 2013 2014 2015 2016 2017 Total Revenue

1,060 1,280 1,522 2,5417 6,712 23,518 60,850

EBIT

(260) (23) 50 (800) 1,994 13,225 34,000

Pre Money Valuation = $4M Seeking $1.5M in New Funding

Use of Proceeds

• Fill gaps

– Sales & distribution channel leadership – Production management

• Implement targeted regional sales and marketing plans
• Pursue strategic partners / licensing opportunities
• Enhance manufacturing capacity

Exit Strategy

• Acquisition by animal diagnostic company

– IDEXX acquired RADIL in 2011 – Neogen acquires Scidera, Geneseek, others – DSM acquires 10 companies since 2010

• Acquisition by competitors / strategic partners
• Typical Med-Tech Acquisitions

– 3-4X Revenue – 8-10X EBITDA

Thank You